Chile Peso and US Dollar
While most currencies depreciate against the US Dollar in Year 2009, the Chile Peso has gained some 20% against the US Dollar. While the strengthens the purchasing power of Chileans, it does not do any good for Chilean exporters as their products are now more expensive and less desirable. It is a known fact that a strong peso brings down import prices, contributing to lower consumer prices.
As recent as Nov 2009, 1 US Dollar trades at 485.0 Chilean Peso (CLP) while things are quite different just in late August 2009 when the exchange rate of Chilean Peso against US Dollar was weak (1 US Dollar = 562 Peso).
In the past 2 weeks, the US Dollar has strengthened against major currencies including the Chilean Peso (CLP). Currently, 1 US Dollar is equal to 5o4.0 Chilean Peso and it is widely expected for US Dollar to further appreciate in the lead up to Christmas and New Year of Year 2010.
Good news for US tourist who wants to travel to Chile with this respite. For Chilean exporters, they can also smile a little (or breathe a little easier) as demand for Chilean products will increase just a little.
Year 2010 will be an interesting year for Chilean forex traders as they wonder if it will offer another topsy-turvy year of currency trading which offers plenty of speculation activities. For now, time for everyone to wind down a little and enjoy the festive season.
April 3rd, 2010 at 10:25 pm
Hope the recent Earthquake does not do too much damage to the national currency of Chile.
Chile – pronunced as Chi lay?
April 3rd, 2010 at 11:09 pm
Somewhere close.
Earthquakes and natural calamities usually does not do long term damage on national currencies if the potential for rebuild is there.
April 8th, 2010 at 6:45 am
Hi,
If you had been trading Chilean Peso recently over the past 4 months, you would either had been a millionaire, or a bankrupt.
Regards,
FG
April 10th, 2010 at 5:11 pm
Used to be a communist country right?